The Ariary is the monetary unit of the Republic of Madagascar. Before the French colonial period, the Ariary was the currency in circulation during the nineteenth-century Kingdom of Madagascar. Ariary derives from the Arabic term "al rial," which designates the monetary system used in the Arabian Peninsula. Commercial exchanges have always been substantial for centuries between Madagascar and the Arab world.

The Value of the Ariary The Ariary is among currencies not traded on international markets—it holds value only within Malagasy territory. You cannot use it outside Madagascar, nor can you obtain it elsewhere.

When put into circulation in 2003, the ariary exchange rate stood at 1 EUR for 1,400 MGA. Since then, it has continued to depreciate steadily. Indeed, to date, this rate has more than tripled since 2003, now at 1 EUR for 4,080 MGA.

Banknotes exist in the following denominations:

• 10,000 Ar (iray alina)
• 5,000 Ar (dimy arivo)
• 2,000 Ar (roa arivo)
• 1,000 Ar (arivo)
• 500 Ar (dimanΦjato)
• 200 Ar (roanΦjato)
• 100 Ar (ariary zato)

Some banknotes, such as those of 1,000, 500, 200, and 100 Ar, retain an indication of their value in Malagasy francs, printed in small text.

History — French Franc, Malagasy Franc. During the colonial period, the French Franc served as Madagascar's monetary system. From 1960 onward, following Madagascar's independence, the French Franc gave way to the Malagasy Franc (FMG). In June 2003, President Marc Ravalomanana introduced a new monetary unit by reviving the former one: the ariary. The Ariary replaced the Malagasy Franc, which had been issued by Madagascar's central bank.

It is important to note that the Malagasy Franc (FMG) remains the reference monetary system for the majority of people (small shops, markets, and so forth). The fixed conversion rate is 1 ariary for 5 FMG. Keeping this in mind is essential to avoid any misunderstanding or confusion.